LONDON (Dow Jones)--Eni SpA (E), Italy's largest oil and gas company by volume, Friday claimed 77.42% of U.K. peer Burren Energy PLC (BUR.LN), drawing a line under its GBP1.74 billion takeover bid.
Eni declared the offer unconditional with regards to acceptances, although said it remains open to other conditions. It said it has lowered the acceptance condition of the offer to 50% from 90% of the voting rights attached to Burren's issued share capital.
The deal is positive, said Roberto Mascarello, a Milan-based analyst with Kepler Equities, who rates Eni Buy. He added that the purchase boosts Eni's hydrocarbon reserves at a time when finding oil and gas assets is difficult because of surging crude prices.
Eni in November agreed to buy Burren with an all-cash offer of 1230 pence a share, in a deal that would boost Eni's assets in Congo and give it a foothold in Turkmenistan. The U.K. company had rejected Eni's earlier offers of 1200 pence and 1050 pence a share, deeming them too low.
At 0940 GMT, Burren Energy shares were flat at 1222 pence in a broadly lower London market. Eni shares were down EUR0.06, or 0.2%, at EUR25.08 in an overall slightly lower market.
Through its U.K. subsidiary, Eni U.K. Holding, the Italian company Friday said in a statement that 35,136,033 Burren shares representing 24.9% of Burren's existing issued share capital have been acquired and that it has also received valid acceptances for a further 74,114,491 Burren shares, representing 52.52%.
Kepler's Mascarello also said Friday's announcement of Eni's ownership level "puts a lid" on marker speculation of a counterbid for Burren. Thursday, media reports had said other companies were preparing a bid for the U.K. company.
Eni has been on a shopping spree over the last year, paying more than $9.5 billion for acquisitions in Congo, Angola, the U.S. and Russia as it seeks to boost its output growth and gain a presence in countries with strong potential upstream production assets.
Last year, 30%-state-controlled Eni increased its target for average annual hydrocarbon output growth during the 2007-2010 period to 4% from a previous estimate of 3%, as a result of recent acquisitions.
Eni also said that Morgan Stanley & Co. International, acting as broker to Eni Holding, holds non-exempt short positions totaling 10,110 Burren shares and no non-exempt long position in Burren shares.
The first closing date for Eni's bid was Thursday. The Rome-based company said its offer remains open as it seeks for remaining shareholders to tender in their shares.
"Burren shareholders who have not yet accepted the offer are urged to do so as soon as possible," Eni said in a statement.